Canada’s dollar touched a one-week low as the discount for crude oil sold by Canadian companies compared with market benchmarks reached its largest since February, limiting the economic boost from the country’s biggest export.
The currency fell for a second day versus its U.S. peer as politicians in Washington continued a standoff over legislation to fund the government and avoid a shutdown. Americans are losing faith in the nation’s economic recovery, according to a Bloomberg National Poll. Consumer purchases account for about 70 percent of economic activity in the U.S., Canada’s largest trading partner.
“For the Canadian economy it’s negative to see that spread widen,” Camilla Sutton, head of currency strategy at Bank of Nova Scotia (BNS), said by phone from Toronto. “There’s a lot of uncertainty right now between different proposals in Canada in terms of how to transport oil, and that’s led to some volatility in that spread. I don’t think those issues are resolved in the next couple of days.”
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